India signs agreement with Sri Lanka to redevelop WW II oil tank farm

India and Sri Lanka have reportedly made their discussions formal on redeveloping an oil tank farm from the era of World War II situated in the port city of Sri Lanka, Trincomalee.

The agreement, signed on January 6, marks the development of Trincomalee Oil Tank Complex, also known as the Trinco Oil Tank Farms, and is a 50-year lease, says Udaya Gammanpila, Energy Minister of Sri Lanka.

The signatories of the agreement include the Land Commissioner General, the Treasury Secretary for the Sri Lankan Government, the regional operators of the Indian Oil Company, Ceylon Petroleum Corporation and the brand-new Trinco Petroleum Terminal Ltd.

As per credible sources, the deal was announced by the High Commission of India, which perceives the deal as a crucial milestone for the India-Sri Lanka energy and economic partnership.

Reportedly, the Cabinet is willing to provide 14 and 24 oil tanks at the regional operators of the Indian Oil Company and Trincomalee Oil Tank Complex to CPS. Furthermore, rest of the 61 oil tank units will be developed by Trinco Petroleum Terminal Pvt. Ltd., in which CPC will have 51% shares and the LIOC with 49%.

S Jaishankar, External Affairs Minister, following his discussions with G.L. Peiris, Foreign Minister of Sri Lanka, regarded Sri Lanka as a reliable friend and promised support to Sri Lanka in the hard times. He further stated that trade and business between these countries has strengthened the bilateral collaboration in the areas of education, development, culture and defense.

According to reports, the government of Sri Lanka announced the establishment of the deal between both countries to unveil a cooperative growth venture followed by the evaluation of the three prevailing agreements with Trinco Oil Tank Farm and India.

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